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Laxman Pai, Opalesque Asia: Family offices allocation to hedge funds suffered a drop from 28% in 2018 to 22.4% in 2019, said a study.
According to Peltz International Survey, in comparison to the 2018 survey results, the allocation to equities and fixed income increased while the allocation to alternatives and cash dipped.
In aggregate, the surveyed family offices allocate most heavily to equities-developed (30%) followed by alternatives (25%), fixed income-developed (14%), fixed income-developing (7%), cash and cash equivalents (7%), and equity-developing (5%). The remainder consisted of "other" such as real estate.
In alternative investments, the largest allocation was to real estate-direct (30%) followed by private equity-direct (25%), hedge funds (22%), private equity funds (19%), REITs (3%) and commodities (1%).
"In the alternatives space, real estate-direct, REITs and private equity-direct experienced increased allocations between 2018 and 2019. Private equity funds also saw a dip from 20% in 2018 to 19.1% in 2019," said Lois Peltz, president of Peltz International and author of the report.
In ranking a list of possible evolutionary changes, 83% of the family office survey respondents expect to see significant increases in multi-family offices compared with 61% for single-family offices.
On the investing front, family offices expect to invest in technology to experience the most significant increase (76%). Investing in ESG (72%), co-inves...................... To view our full article Click here
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